Financed car in Alberta
We have a financed vehicle and are 2.5 years into a 5 year loan and we cannot make these payments.
This car has gotten all of our debts so piled up that we cannot fathom being able to pay them off and are very stressed out and not sleeping at night.
We have no idea what to do. Does bankruptcy in Alberta cover financed car loans? Because we cannot even afford to feed our little one barely anymore and I am having a hard time finding a job.
We are at a huge loss of what to do right now with only one person working.
A bankruptcy will erase your car loan. You will have to give up the car.
There is also a “Seize or Sue” law in Alberta, which means if the company that finances the car seizes it, they cannot also sue you. Note that this only applies if the car was financed through a conditional sales contract.
If you turn the car in to them they can sue you for the shortfall.
Licensed Insolvency Trustee